No it can connect with a ethernet cable to your modem or router
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The PS2 Slim Plays all the PS2 games the Fat PS2 would.
The PS2 slim does not have a harddrive
yes of course you do if you are going to be online you need internet
the larger ps2 you can ...yes not the slim ps2
In order to play PS1 games on a PS2 you need to have a PS1 memory card in your PS2, so you can save your progress. Otherwise they don't work.